The upcoming week would be big in announcements from Australia’s monetary and banking authorities. New updates on fiscal policies would be out, shaping up the future of the Australian Dollar (AUD) in 2020 and beyond. The Reserve Bank of Australia has announced that it is going to organize two major events next week.
On July 21st, 2020, the Reserve Bank of Australia will hold a meeting to discuss the monetary policies and mitigate the looming AUD volatility. In this meeting, the Reserve Bank officials would be constructing their technical outlook on how Australian investments in riskier assets are gaining momentum due to the positivity revolving around a potential coronavirus vaccine. The meeting is also expected to break down an invalidated continuation pattern seen in the recent AUD vs. U.S. Dollar price chart. The minutes of this meeting would paint a clearer picture of AUD trading in 2020. The meeting may also address the pressing resistance of AUD price growth in the past weeks.
The Reserve Bank also announced that later on the same day, it would arrange an event, where the Reserve Bank Governor, Philip Lowe, would make an important speech on the impact of COVID-19 on Australia’s labor market and public-sector economy. Lowe is likely to highlight the downside risks of COVID-19 resurgence in Melbourne and the ensuing lockdowns on the overall Australian economy.
Later that week, on July 23rd, 2020, the Australian Treasurer, Josh Frydenberg, is expected to release a statement on the latest economic updates. This statement will hold crucial information on how Australia’s government support programs will operate post-September by introducing supportive changes in both monetary and banking policies.